Corchon, Luis C.; Zudenkova, Galina - Departamento de Economía, Universidad Carlos III de Madrid - 2008
We study the percentage of welfare losses (PWL) yielded by imperfect competition under product differentiation. When demand is linear, if prices, outputs, costs and the number of firms can be observed, PWL is arbitrary in both Cournot and Bertrand equilibria. If in addition, the elasticity of...